The Analyst

The Thesis

Cantor Fitzgerald's team of researchers hosted a conference call with John Richards, Amazon's vice president from 2003 through 2016 and now owner of YourChoice Technologies. The main takeaway from the conversation is that Amazon's roots trace back to merely being an aggregator of products and delivery services. Over time, it evolved to become a technology behemoth and continues to expand into fintech areas so it can "do what the customer wants."

Amazon, for example, could dominate in the voice language payments and peer-to-peer transactions through Alexa and Amazon Pay, the analysts wrote. Beyond payment transaction, Amazon is showing a desire to enter into other financial and banking business ventures, including opening and holding bank accounts for clients.

Amazon needs to not only build trust with customers in holding their money, but demonstrate their banking service is more convenient than traditional bank accounts, the analysts wrote. In terms of compliance, Amazon will likely follow all rules and regulations and keep on expanding its services.

Bottom line, Amazon already boasts the "most powerful real estate" platform in the world, so how far can Amazon expand into fintech? "As far as the customer wants."

Price Action

Shares of Amazon closed at $1,427. The stock is up 20 percent in 2018.